The UK Autumn 2025 Budget is out. So, what does it mean for heating your home? The truth is, most of the changes won’t land immediately. For many homes, the impact on bills, support schemes and grants won’t be felt until April 2026 – and even then, more changes could follow. I have

That doesn’t mean there’s nothing you can do this winter. The Boiler Upgrade Scheme (BUS) and the Warm Homes Plan are still running, and you can take advantage of both before any new rules come in. We’ll explain how.

This Budget mainly sets the stage for next year. So, if you’re considering upgrading your heating or making your home more energy-efficient, now is a smart time to start planning.

Key takeaways at a glance:

1. A planned £150 average reduction in household energy bills from April 2026
2. The Boiler Upgrade Scheme (BUS) and Warm Homes Plan will continue
3. Heat pump grants of up to £7,500 are still available – but support levels could change in future
4. Training for under 25 apprentices will be completely free for small and medium sized businesses

“For every family, we are keeping our promise to get energy bills down and cut the cost of living with £150 cut from the average household energy bill from April.’ 

Rachel Reeves, November 26th 2025

What the 2025 Budget Means for Home Heating

The 2025 Autumn Budget reaffirmed the government’s ambition to drive energy efficiency and low-carbon heating. Speculated VAT cuts on energy bills didn’t materialise, but funding for home heating upgrades continues. 

A headline announcement is that many households will see lower energy costs – the government estimates a £150 annual saving for the average home.

Regarding grants, some proposed changes indicate subsidies for low-carbon heating (including heat pumps) may be distributed more carefully in future. However, final rules have not yet been confirmed.

The government is ending the long-running Energy Company Obligation (ECO) scheme, whereby large suppliers fund insulation and heating improvements for low-income or fuel-poor households. Instead, some support will continue under the wider Warm Homes Plan.

“The announcement of £150 off energy bills from April 2026 will provide welcome relief for households,” said Lincoln Smith, Managing Director of Custom Heat. “We see it as even more important as a heating company representing and working within the West Midlands, including Coventry and Birmingham, where fuel poverty is the highest in the UK.”

 16.7% of West Midlands’ homes are fuel poor – Gov.uk

Especially lower-income or less energy-efficient homes in urban areas.

“The long term solution to high heating costs is investing in efficient boilers, proper insulation, and where appropriate, heat pumps. We’re seeing increasing consumer interest in making homes more energy efficient, and that’s the right direction. The Warm Homes Plan commitment shows the government understands that tackling the root causes of high bills, not just reducing them temporarily, is what’s needed.”

The Warm Homes Plan Still Has Momentum

The government’s flagship Warm Homes Plan continues – a central part of lowering bills and helping households switch to renewable heating.

The Warm Homes: Local Grant offers free energy-saving improvements if you’re on a low income, receive certain benefits or live in a qualifying postcode in England. Expected upgrades include insulation, draught-proofing and low-carbon heating.

The Boiler Upgrade Scheme (BUS) Continues. But Future Eligibility May Shift

The Boiler Upgrade Scheme (BUS) remains in place, with £295 million committed for 2025/26.

• Up to £7,500 is available for air-source and ground-source heat pumps (Ofgem)
• These grants are unchanged for now

Some expansions have been proposed. For example, including air-to-air heat pumps and heat batteries. These technologies typically cost less, so provisional grant levels (e.g. around £2,500) have been suggested.

However: under current BUS regulations, these technologies are not yet eligible. Any expansion depends on parliamentary and regulatory approval.

Changes to who can get a subsidy may also occur in 2026. This could mean some households receive less support. But no official changes have been finalised.

What The Budget Means for Homeowners in 2026 – Your Action Plan

1. Confirm: Are You Eligible?

Do you receive means-tested benefits? These could influence future grant levels if new rules are introduced.

Look up your home’s Energy Performance Certificate (EPC) to see if insulation or other work is needed before installing a heat pump. You can find your EPC for free on Gov.uk.

2. Act Quickly with Assessment

Secure a BUS voucher (if eligible) under the current 2025/26 funding.

Custom Heat can carry out a free eligibility and technical assessment. For grants under Boiler Upgrade Scheme (BUS), the installer must be MCS-certified.

3. Consider Other Low-Carbon Options

If you don’t qualify for the full heat pump subsidy, consider lower-cost alternatives such as air-to-air heat pumps (keeping in mind they’re not yet BUS-funded).

You can also explore insulation or heating-control upgrades through the Warm Homes Local Grant.

4. Spread the Costs

Finance options mean you can avoid heavy upfront payments.

Even with reduced or changing subsidies, heat pumps can still offer long-term running-cost savings.

Read more: What’s better, a gas boiler or heat pump?

Finding the Right Heating Solution (and Fitter)

As rules evolve, having a knowledgeable, accredited installer matters.

• We manage BUS applications, to help you understand if you’re eligible and how to apply. BUS grants can only be awarded when both the product and the installer are MCS-certified, which we are
• With our 0% finance options, upgrading becomes more affordable
• We assess your home’s insulation, heating system and suitability for low-carbon technology
• Our team is Gas Safe, fully qualified and provides installation, maintenance and aftercare. The news about free apprenticeship training for SMEs removes a real barrier and will help us recruit more talented young people

“We’re actively recruiting and training apprentices in/around Coventry and Birmingham, because we know they’re the future of this industry, and this Budget makes it easier for SMEs to do the right thing,” concludes Lincoln Smith.

A trusted local partner makes navigating the changing landscape much simpler.

Contact Custom Heat today to explore your heating upgrade options and available support.

FAQs: What the Autumn 2025 Budget Means for UK Homes

Still weighing it all up? Find the answers to common questions.

What’s changing?

The government expects average household energy bills to fall by £150.

Some heating subsidies may be distributed more selectively, but no final eligibility changes have been confirmed yet.

What’s staying the same?

The Warm Homes Plan and Boiler Upgrade Scheme continue and are expected to run until 2028.

What heating systems qualify for grants?

Currently:

• Air‑source heat pumps
• Ground-source heat pumps

Proposed (not yet approved):

• Air-to-air heat pumps
• Heat batteries

How much will I pay after grants and finance?

Many BUS recipients receive £7,500 off a heat pump installation. Actual cost depends on home size and system type – and in some cases, final costs can be similar to installing a new efficient gas boiler.

How do I know if my home qualifies?

A good starting point is: You must own the property, replace a fossil-fuel heating system and have a valid EPC.

When will the Autumn Budget changes take effect?

• Some scheme funding (BUS, Warm Homes Plan) applies from April 2025
• Wider changes – such as ECO ending – are expected from April 2026
• Any BUS expansions or new rules will depend on parliamentary approval

When is the next UK Budget?

The Spring Budget 2026 is next, followed by Autumn Budget later that year.

Further Reading

• Midlands heating firm welcomes Budget commitment to apprenticeships and energy efficiency (Warwickshire World)
• UK to cut household energy bills by 150 pounds a year (Reuters)
• Rachel Reeves decides against cutting VAT on energy bills in Budget (Financial Times)
• Reduce your Carbon Footprint with an Air Source Heat Pump
• Heat Pumps vs Gas Boilers: Which is Right for You?